Analyse P&L variances Prompt
Prompt
Analyse variances in this P&L. [PASTE P&L — current period vs prior period or vs budget] Context: - Period: [Q3 vs Q3 prior year / September vs budget] - Business context: [major events, changes, initiatives] - Areas of concern: [where are you most surprised?] For the largest variances: 1. Size (dollars and %) 2. Most likely driver 3. One-time or recurring? 4. Additional info needed to confirm 5. Whether action is required Finish with a 3-sentence executive summary of the period.
Why it works
Providing business context alongside the P&L ensures the AI interprets variances through the lens of what actually happened rather than generic accounting explanations. The 'most likely cause' versus 'investigation required' distinction prevents the analysis from treating every variance as equally uncertain — some are clearly explained by known events, others need further examination. The one-sentence management summary output produces the exact language needed for board or leadership communications.
Watch out for
P&L variance analysis based only on the numbers without business context will produce explanations that are technically possible but commercially wrong. Always provide context about major events (new product launch, customer loss, cost reduction initiative) before running variance analysis, as the AI cannot know what happened in your business without being told. Review the explanations against your own knowledge of the period before using them in management reports.
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